North Carolina Down Payment Assistance Programs

Payments Gateway - These systems would be the Down Payment Assistance System as well as the Mortgage Credit Certificate.

You purchase a property and December 1, 2009 and should you qualify for one of those programs, you might also be eligible for the $8,000 tax credit just enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the previous three years. Here is the exact same qualifying definition.

An MCC “reduces your tax liability predicated on a portion of the mortgage interest that you pay.

It is possible to claim 20% of the interest you pay as a credit on your federal income taxes in case you are eligible for the MCC. It's possible for you to save up to .

You'll manage to join this, if you do qualify for the MCC, for 2009. This would reduce a buyer's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income as well as the purchase price of the house you're buying. Household income means the “gross income of the mortgagor and every other person expected to reside in the home who's 18 years of age or older.”

The income and house price limits that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Man $61,500 2 Individuals $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Cost Limits New House $220,000 Existing Residence $210,000

Home buyers that want help with their down payment and closing costs might be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay up to $8,000 of the remaining balance.

This program has stricter income limits than the MCC plan outlined above. Like the MCC application, it can be used along with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, can not be used in combination with the MCC. It is an either or situation.

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Persons $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000